Ready To Buy A Dental Practice?
When you are looking to either expand your dental practice or are considering whether or not to buy a dental practice, there are a number of things you must consider. Doing a thorough assessment before getting started is essential to a successful transaction. Here are a few tips to determine whether purchasing a specific practice is worth your while:
- Income Statements
In order to determine whether or not taking over a dental practice will be a viable move for you, it’s best to review all the income statements, including P&L, balance sheets and about three years of income tax returns.
You want to make sure any equipment that will come with the sale is in good working condition. You don’t want to have to replace anything or run the risk of faulty equipment going in.
It’s always a good thing to know how many patients are on the roster and whether or not their accounts are current.
What types of contracts are in place, and is there an opt-out clause in the event you want to terminate services?
- Expenses and revenue
You must have a complete breakdown of any expenses that occur on a monthly basis, as well as incidentals, cash flow and reimbursements from insurance.
Is this practice in a desirable location? Doing a market survey and checking out the demographics should play a huge role in your final decision. Do a little research – why is the practice being sold? Will acquiring the practice make a negative impact on your existing brand?
Knowing what you are getting into before you decide to buy a dental practice can save you time and money. Menlo Dental Transitions will walk you through this process, highlighting any deficiencies, inconsistencies and items that may warrant concern.
It’s our job to help you seamlessly transition into the acquisition of a dental practice. Being aware of all variables is key. For more information on our services and how we can assist, contact us at Menlo Dental Transitions today!